• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Case Study Timmings plc, a small engineering firm.

Extracts from this document...

Introduction

Pg. 529 Case Study: Timmings plc (a) Using the case as an example, explain what is meant by 'increasing the scale of operations'. By 'increasing the scale of operations' it is meant that it increases the variety of jobs (operations) it does. For example with Timmings plc, it started as a small engineering company, it repaired agricultural implements for farmers in Hereford and Worcestershire. Now it has a full line of skid steer and mini skid loaders as well as attachments, mobile screening plants and six models of mini excavators and it recently added a complete line of potato harvesting, irrigation and handling equipment, and now it manufactures and distributes worldwide. This is an example of increasing the scale of operations, as it started doing only one thing and now it does many more, so in needs more resources, but it produces much more output. ...read more.

Middle

Machinery is often more precise and consistent, but if it breaks down there would be huge delays and costs. I believe that Timmings plc changed to capital intensive, because in 2001 it began to experience problems in recruiting high quality engineers, and at the same time, the business was sold to a large US engineering company, so maybe (and most probably) the US company believed that it would be better to change to capital intensive. (4) (d) Describe two technical economies of scale that Timmings plc is likely to exploit. Technical economies arise because large plants are often more efficient. The capital costs and the running costs of the plants do not rise in proportion to their size. ...read more.

Conclusion

In 2001 Timmings plc changed to capital intensive production and spent $180 million on CNC machines and robots (as it already had difficulties recruiting high quality engineers). Two categories of robots were purchased by Timmings. Processing operation robots and assembly line robots. Some of the advantages of capital intensive production are that they are generally more cost effective if large quantities are produced, machinery is often more precise and consistent, its easier to manage than people and it can operate 24/7. This is good, as people are difficult to manage and cannot work without breaks and holidays. They need to be motivated to improve performance, and may go sick or leave suddenly. In my opinion the benefits of switching to capital intensive strategies outweigh the drawbacks; the only downside I can see is that 30 staff were laid off. (10) ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Case Study - Recovery Kitchens Ltd

    If the business does move to making kitchens from managed wood then they will still be able to gain a fair amount of the market share as they will be able to offer their target market a wider range of products.

  2. IB BM Case Study

    growth and the prediction for a reduction in air travel by 2%. 4. a) Describe and evaluate the behavior of Fun Air's competitors to their entry into the market. Fun Air had captured a 15% market share by the end of 1999 and competitors have started to notice.

  1. starting a small business

    Please state 8. How much does it cost? please tick �5-�20 �20-�36 �36 or more 9. What do you get done the least? Please state 10. How much does that cost? Please tick �0-20 �30-50 �50 or more 11. Does your salon sell any products? Yes No 12.

  2. Walt Disney: Case study

    Concentrating on maturing markets like the US and Canada, which are currently seeing financial slowdown and not increasing in appearing markets would restrict the company's general revenue development and furthermore dwindle its market place in the international market. Proliferation of piracy in amusement commerce The expansion of piracy in the entertainment commerce is a important and quickly growing phenomenon.

  1. New business plan

    Corporate Businessman The third group is for corporate meetings. At first glance, this might seem to be in contradiction with our theme of adventure and culture. However, this is not so. Emperor's House enables businessman to express their wish to be as successful and powerful as the emperor. Like golf, it gives them time to relax and enjoy the premises when they talk to clients.

  2. The Main advantages and disadvantages of mixed economy system

    Another disadvantage is impossibility of any kind of competition. The thing is that absolute governmentalisation of economy creates super monopolies, which are not interested in development of their production and services at all. They do not have to implement new technologies or improve their efficiency.

  1. Organisational Behaviour (in short called as OB) is concerned with the study of the ...

    In addition, each division has a suitable organisational structure. They are all monitored by a corporate headquarter focusing on divisional activities and the financial management for each department. Advantages ? Clear division of labour ? Enhance strategic and financial control Disadvantages ? Increase bureaucratic costs ? Communication barriers ? Competition

  2. Case Study on Alibabas Taobao

    Alipay formed partnerships with leading Chinese banks and signed a long-term agreement with China Post, which meant customers without a debit or bank card could fund their Alipay accounts at any of its 66,000 offices. Final result Taobao developed into a diverse e-commerce platform where businesses sell a very wide

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work